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Calculate the exact EU Emissions Trading System cost for any ship voyage — EUA allowances required, total carbon cost in euros, and phase-in impact. No login required.
Track ETS costs across your entire fleet automatically per voyage
Try VEMO FuelIQ Free →The EU Emissions Trading System (EU ETS) is the world's first mandatory carbon pricing scheme for maritime shipping. From 2024, all ships of 5,000 gross tonnes (GT) or more calling at EU or EEA ports must surrender EU Allowances (EUAs) equivalent to their verified CO₂ emissions — regardless of the ship's flag state.
The legal basis is EU Directive 2003/87/EC as amended by EU Directive 2023/959, which extended the ETS to cover the maritime sector. The regulation was implemented through the EU MRV Regulation (EU/2015/757) which requires per-voyage monitoring of CO₂ emissions.
From 2026, the scope extends beyond CO₂ to also cover methane (CH₄) and nitrous oxide (N₂O) emissions — making LNG carriers with methane slip subject to higher ETS costs than pure CO₂ calculations would suggest. The GWP factor for CH₄ is 29.8 (IPCC AR6, 100-year).
First year of ETS for shipping. Only 40% of CO₂ must be surrendered. Many shipowners absorbed the cost without passing it to charterers.
Scope expands significantly. Most charter parties now include BIMCO ETS clauses to pass costs to charterers. ETS becomes a major hire negotiation item.
Full cost impact. CH₄ (methane slip from LNG engines) and N₂O added to scope. LNG carriers face higher-than-expected ETS bills if methane slip is not managed.
The calculation uses three variables: verified CO₂ emissions, the EU scope percentage (50% or 100%), and the annual phase-in factor.
| Fuel Type | Emission Factor (tCO₂/t fuel) | Source | LNG Advantage |
|---|---|---|---|
| LNG (natural gas) | 2.750 | MARPOL Annex VI Table 1 | Baseline — lowest CO₂ per tonne fuel |
| HFO (heavy fuel oil) | 3.114 | MARPOL Annex VI Table 1 | 13% higher CO₂ than LNG per tonne fuel |
| VLSFO (0.5% S) | 3.150 | MARPOL Annex VI Table 1 | 14.5% higher than LNG |
| MGO / ULSFO | 3.206 | MARPOL Annex VI Table 1 | 16.6% higher than LNG |
| LPG (propane) | 3.000 | IMO MEPC.364(79) Annex VI | 9% higher than LNG |
| Ammonia (green) | 0.000 | No carbon in molecular formula | 100% ETS-free (no CO₂) |
LNG-fuelled ships emit unburned methane (CH₄) during combustion — called methane slip. A typical MEGI 2-stroke engine emits 0.5–1.5 g CH₄/kWh. From 2026, CH₄ is in EU ETS scope at GWP 29.8. A 10,000 TEU container ship burning LNG at 0.5% methane slip could face €50,000–€150,000 in additional ETS costs annually — not reflected in the basic CO₂ calculation above.
The EU ETS covers ships of 5,000 GT or more. The percentage of emissions in scope depends on whether both ports are in the EU/EEA.
| Voyage Type | EU ETS Scope | Example |
|---|---|---|
| EU port → EU port | 100% of CO₂e | Rotterdam → Hamburg; Marseille → Piraeus |
| EU port → Non-EU port | 50% of CO₂e | Rotterdam → Singapore; Le Havre → Houston |
| Non-EU port → EU port | 50% of CO₂e | Tokyo → Zeebrugge; Qatar → Barcelona |
| Non-EU → Non-EU | 0% — not in scope | Singapore → Houston (no EU port call) |
| At berth in EU port | 100% of CO₂e at berth | Auxiliary engine fuel while moored in Rotterdam |
The scope determination is based on the first port of loading and last port of discharge. A vessel transiting through multiple EU ports on a single voyage still classifies based on the origin and destination of each leg separately under the MRV monitoring plan.
VEMO FuelIQ automatically classifies every voyage leg and calculates ETS costs in real time
58 vessel types · 3,707 ports · EU/UK ETS separated · CH₄ + N₂O from 2026 · EUA surrender tracker
Start Free — No Credit Card →Yes. EU ETS applies to any ship of 5,000 GT or more calling at EU/EEA ports regardless of flag state, country of registration, or vessel ownership. A Liberian-flagged LNG carrier calling at Rotterdam is fully in scope.
The shipping company (as defined by EU MRV — typically the ISM DOC holder) is legally responsible for EUA surrender. However, BIMCO ETS clauses allow the cost to be passed to charterers. The BIMCO Emissions Trading System Clause for Time Charter Parties 2023 is now widely used.
The penalty is €100 per tonne CO₂e not surrendered, plus the obligation to surrender the missing EUAs still applies. The company name, flag state, and shortfall tonnage are published in the EU Official Journal. Repeated non-compliance can lead to a detention order from EU member states.
Yes. The UK ETS for maritime shipping launched in 2026 and is a separate scheme from EU ETS. UK Allowances (UKAs) must be surrendered separately by 30 September for voyages to/from UK ports at 50% scope (international voyages). A voyage from Rotterdam to the Port of London must account for both EU ETS (50% for the EU-leg) and UK ETS (50% for the UK-leg).